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Posted in Auto Loans
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Carsten1408

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Did my auto finance company screw me?
So here is what happened, I got my first auto loan when I was 19 years old about 7-8 months ago. I was very young and had not previously established any credit or had any cosigners so naturally I got stuck with a pretty high interest rate of over 20%. I knew at the time that it was an extremely high interest rate but I needed a car desperately for my work (as a Wedding Photographer) and overall I have no regrets about it, I've always made my payments on time and never had trouble with the amount. But here is the problem, About 4 months ago I decided That i should try to refinance the car because I'd rather my payment go towards more of the principal than the interest, So I ran a credit check on myself a find out that I have no credit so after doing some investigation i find out that my auto finance company had not been reporting to the bureaus because they "Didn't have the right social security number on file" I had been making payments for months and they never mentioned this to me. So I gave them my social and they said they would report my payment history, but when I check my payment history on credit karma I only get payment history from october which is the month that i fixed the whole social security number problem.

Is it a possibility that my auto finance company deliberately used the wrong social on my account so that i would be trapped at such a high interest rate and be unable to refinance because they weren't reporting and then when I fixed it they seem to have only reported from october onward.

Ps. I still cannot refinance because my credit score is now at 604 even after maying 7-8 payments on time every month.

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Personally, I doubt they would do anything like that on purpose. Even if they didn't want you to refinance elsewhere, no halfway decent business would do something to jeopardize returning business so harshly.  It's a lose/lose on their end if you're unable or willing to buy from them again because of a thin credit file.

Keep in mind, although having an installment loan for a car is good for your credit history, if that is the only thing on your report, those eight months wouldn't do much. Although it feels like a long time on your side, to lenders that doesn't prove much stability.  Your credit history is based off open accounts, so when that loan is eventually paid off, it won't matter if they reported it for years, or just a single month.  In the mean time while trying to refinance, your best bet to get a more reasonable interest rate would be a cosigner with more established credit history. If that's not possible, then it sounds like you're already making the best of a bad situation.

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No. No one is required to report to the credit reporting agencies. It is a completely voluntary thing. (Of course, state laws may vary so this may not hold true in all states.)

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